Read news from:
Austria
SHARE
COPY LINK
For members

MONEY

Do cross-border workers get Germany’s €300 energy relief payment?

Workers in Germany are set to receive a one-off payout to help with high energy costs. What's the situation with cross-border commuters?

Published: 31 August 2022 17:17 CEST
A woman in Germany holds cash notes in her hand.
A woman in Germany holds cash notes in her hand. Photo: picture alliance/dpa | Daniel Karmann

In September, workers in Germany will receive €300 as part of government measures agreed earlier this year to help people deal with the rising cost of energy.

The payout will be subject to tax and should arrive along with employees’ September pay packets. Self-employed people can deduct it from their advance tax payments from September or when they submit their tax return next year.

READ MORE: What you need to know about Germany’s €300 energy relief payout

We looked at whether cross-border commuters can get the payment following a question from a reader of The Local. 

I live in Germany but I work in another country. Can I get it?

Yes. Due to Germany’s location in Europe, many people live in the Bundesrepublik but work in one of the neighbouring countries, such as Austria or Switzerland. 

And there’s good news for them: cross-border commuters who are subject to unlimited tax liability in Germany and receive income from employment with a foreign employer in 2022 are entitled to the payment, known as the Energiepreispauschale or EPP in Germany.

“The entitlement to the EPP exists irrespective of whether Germany also has the right to tax the salary,” says the German government.

Employers in Germany will generally make the €300 payment as part of employees’ salaries.

“However, the foreign employer does not pay EPP under German law,” says the government. 

Instead, employees in this position will receive the payment from their tax office “via the submission of an income tax return for the year 2022”, added the government.

I work in Germany but I live in another country. Can I get the payment?

In this case, the answer is no. Workers have to be residents in Germany to be entitled to the payment. 

“Taxpayers without residence or habitual abode in Germany, in particular employees with limited income tax liability, are not eligible,” says the German government. 

Vocabulary 

Cross-border commuters – (die) Grenzpendler

Neighbouring country – (das) Nachbarland

Employer – (der) Arbeitgeber

Lives abroad – wohnt im Ausland 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

READER QUESTIONS

How much should tourists really tip in Germany?

Some suggest that tourists from the US have pushed their tipping culture on metropolitan cities in Germany. Others say foreign nationals in Germany don’t tip enough. Here's what you need to know.

Published: 17 June 2024 16:38 CEST
How much should tourists really tip in Germany?

As a visitor in Germany, or a newcomer to the country, knowing a couple key things helps to ensure a smooth transaction.

Initiating the payment process

The first is knowing how to ask for the bill: Wir möchten zahlen bitte (We’d like to pay please), is a tested and true simple option.

Then you just have to be able to navigate a couple likely follow-up questions: Mit karte oder bar? (With card or cash?) And, Zusammen oder getrennt? (All together or separate?)

In casual establishments, oftentimes when you wish to pay by card, the server will ask you to follow them to the cash register to complete the transaction.

Since paying at the register is not uncommon, it’s also common enough to simply get up and walk to the register when you’re ready to pay – especially if you’re short on time.

How to tip like a German

The second thing that’s good to know is how to tip in Germany.

American tourists, coming from the land of mandatory tip-culture, are prone to falling into one of two classic errors. The first is reflexively tipping 20 percent or more, even at places where tips tend to be much more modest. The second would be to think “Nobody tips in Europe,” much to the dismay of every server they come across in Germany.

The general consensus is that tipping is good practice in Germany, especially at any establishment where you are being waited on.

So not necessarily at a Döner kebab shop or an imbiss (snack shop) where you are picking your food up at a counter and very often taking it to go. But certainly at any restaurant where someone takes your order and brings food or drinks to you.

The Local previously inquired about customary tip rates in Germany with an etiquette expert, and also with a sociologist who conducted research on tipping culture – both of whom confirmed that Germans tend to think a five to 10 percent tip is standard.

Of course bigger tips for excellent service are also encouraged, but there are few cases where Germans would consider tipping 20 percent. 

For smaller transactions, like for a couple drinks at a cafe or a bar, a ‘keep the change’ tip is also normal in Germany.

If you were paying for a couple beers that came to €8.90, for example, you might hand the bartender a €10 bill and say “Stimmt so” to indicate that the change is a tip.

Especially compared to the US, it’s true that the expectation to tip is expressed less in Germany. But many Germans do make tipping a common practice. So making a habit to tip modestly when dining out in the country will help you blend in better with the locals.

READ ALSO: Eight unwritten rules that explain how Germany works

SHOW COMMENTS